Thursday, January 19, 2012

Bank of America reverses loss and earns $2 billion

You see. The banking fees weren't needed. You made a profit anyway.

Bank of America made $2 billion in the last three months of last year, reversing a loss from a year earlier. It offset legal expenses over mortgages and losses in its investment banking business by selling debt and its stake in a Chinese bank.

[...]Bank of America, one of the largest credit card issuers, said customers who paid bills a month late declined for the 11th consecutive quarter. New credit card accounts also grew 53 percent, and the division posted a profit of $1 billion.

Already dealing with an image problem after the 2008 financial crisis, Bank of America caused an uproar last fall when it announced a $5 monthly fee for its debit cards. The bank quickly backed off.

Banks have been raising all types of customer fees. They say they need to make up lost revenue because a federal law that took effect last year caps what banks can charge stores for purchases paid for with the swipe of a debit card.
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